The US Internal Revenue Service released IR 2024-204 on 9 August 2024, which contains an early draft of the updated Form 1099-DA. This form is for brokers to report certain sale and exchange transactions of digital assets that take place beginning in the calendar year 2025. Generally, these forms will be sent separately to taxpayers and the IRS in early 2026.
The IRS seeks public comments on the draft form.
The new draft of Form 1099-DA, Digital Asset Proceeds From Broker Transactions, reflects the final regulations for custodial broker reporting and includes the transitional relief described in Notice 2024-56, Notice 2024-57, and Revenue Procedure 2024-28.
As part of the process that will lead to a final version of the form, the IRS posted the new draft of Form 1099-DA to IRS.gov along with the instructions for the recipients of the form.
The IRS expects to post the draft instructions for filers soon. Once the draft filer instructions have been posted, a notice will be published in the Federal Register to allow for a 30-day comment period.
The IRS issued a news release at the end of June announcing the final regulations on the reporting requirements for custodial brokers regarding digital assets while informing the public that the agency would soon release an updated form.
